CalcHarbour > Personal loans
- PERSONAL LOANS
AUSTRALIA
Car Loan Calculator Australia
Use the CalcHarbour Car Loan Calculator to estimate how much a new or used car loan could cost based on the vehicle price, deposit, trade-in contribution, interest rate, loan term and repayment frequency.
You can also model a balloon or residual payment, include establishment and ongoing fees, add extra repayments and compare how different loan structures affect your regular repayments and total interest.
- Last content review: 11 October 2026
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How to Use the Car Loan Calculator
Start by entering the purchase price of the vehicle.
Then add any cash deposit or net trade-in amount you plan to contribute. If you are financing eligible additional costs as part of the loan, enter those separately where applicable.
Next, enter:
- the annual interest rate
- loan term
- repayment frequency
- establishment fee
- ongoing fees
- any extra repayments
- balloon or residual payment, if applicable
The calculator can estimate weekly, fortnightly or monthly repayments.
CalcHarbour will then show key figures including:
- amount financed
- regular repayment
- estimated total interest
- establishment and ongoing fees entered
- final balloon payment
- total loan cash outflow
- estimated repayment period
- the effect of extra repayments
- a balloon versus no-balloon comparison
- an amortisation schedule
This makes it easier to compare the full financing structure, rather than looking only at the advertised monthly repayment.
How Car Loan Repayments Are Calculated
A standard car loan is generally repaid through regular principal-and-interest repayments over an agreed term.
Each repayment consists of:
Principal — the portion that reduces the outstanding loan balance.
Interest — the lender’s charge for providing the finance.
For a standard amortising loan with no balloon payment, CalcHarbour uses the formula:
Where:
- P = amount financed
- r = interest rate for each repayment period
- n = total number of repayments
For calculator modelling, the annual rate is converted according to the selected weekly, fortnightly or monthly repayment frequency.
Actual lenders may calculate interest daily or use different payment-date, fee and rounding conventions, so a lender’s repayment schedule may differ slightly from a general calculator estimate.
Car Loan Repayment Example
Suppose you are buying a vehicle for $40,000 and contribute a $5,000 deposit.
If the remaining $35,000 is financed for five years at 8.50% p.a., with monthly repayments and no balloon or additional fees, the estimated result is:
Loan detail
Estimate
Vehicle price
$40,000
Cash deposit
$5,000
Amount financed
$35,000
Interest rate
8.50% p.a.
Loan term
5 years
Repayment frequency
Monthly
Estimated repayment
$718.08 per month
Estimated total interest
$8,084.72
Estimated loan cash outflow
$43,084.72
This example assumes the interest rate stays unchanged and that no establishment or ongoing fees apply.
A real loan may cost more once lender fees and other finance charges are included.
How a Deposit Changes Your Car Loan
A larger upfront deposit generally reduces the amount you need to finance.
For example, if a vehicle costs $40,000:
- with no deposit, you may need to finance $40,000
- with a $5,000 deposit, the financed amount falls to $35,000
- with a $10,000 deposit, the financed amount falls to $30,000
Reducing the principal can lower the regular repayment and the total interest charged, assuming the interest rate and loan term remain the same.
However, using all of your available cash for a deposit may not suit every situation. Your broader budget and emergency savings should also be considered separately.
CalcHarbour does not assess whether a particular deposit amount is appropriate for your circumstances.
How a Trade-In Affects the Amount Financed
If you are trading in an existing vehicle, its net contribution can reduce how much you need to borrow.
The important figure is not necessarily the dealer’s headline trade-in value.
If money is still owing on the old vehicle, the amount available to contribute towards the new purchase may be lower.
For example:
- Trade-in value: $15,000
- Amount still owing: $8,000
- Potential net contribution: $7,000
The calculator field should therefore reflect the actual amount being contributed to the new purchase rather than simply the advertised trade-in value.
If negative equity from an existing loan is being added to new finance, the transaction can be more complex. Confirm the exact financed amount with the lender before relying on an estimate.
What Is a Balloon Payment on a Car Loan?
A balloon payment, sometimes called a residual payment, is a lump sum left owing at the end of the loan term.
Instead of repaying the full principal through your regular instalments, part of the debt remains outstanding until the final payment.
Moneysmart explains that a balloon can make regular repayments smaller, but because the lump sum remains outstanding and attracts interest, the total loan cost will generally be higher. Moneysmart ↗
Example of a balloon loan
Consider $40,000 financed over five years at 8.95% p.a.
With a $12,000 balloon, the estimated monthly repayment is approximately:
$670.05 per month
The estimated total interest is:
$12,203.28
At the end of the term, the $12,000 balloon still needs to be paid.
The same $40,000 loan with no balloon would require a higher regular repayment but would generally produce a lower total interest cost.
That illustrates the main trade-off:
Lower regular repayments now
vs
a larger final payment and potentially greater overall interest
Before choosing a balloon structure, make sure you understand how the final amount will be paid.
Balloon Payment vs Guaranteed Future Value
A balloon payment and a Guaranteed Future Value (GFV) are not necessarily the same thing.
Moneysmart describes GFV as a vehicle-finance feature where the customer may have options at the end of the agreement, such as keeping, upgrading or returning the vehicle, subject to conditions such as kilometre limits and vehicle condition. Moneysmart ↗
CalcHarbour’s balloon feature models a financial residual amount only.
It does not model:
- guaranteed trade-in values
- kilometre limits
- vehicle-condition requirements
- manufacturer finance programs
- end-of-term return options
If your finance agreement includes GFV conditions, refer to the actual contract rather than treating the balloon calculator as a complete representation of that product.
Car Loan Fees Can Make a Big Difference
The interest rate is only one component of the cost of car finance.
Moneysmart identifies several fees that may apply to car loans, including establishment fees, broker fees, dealership or introducer fees, monthly service fees and charges that may arise after missed payments or default. Moneysmart ↗
Depending on the product, you may encounter:
- application or establishment fees
- monthly account fees
- annual fees
- broker fees
- dealer or introducer fees
- late-payment fees
- default charges
- early termination costs
- Financing an establishment fee
If a fee is paid separately upfront, it does not increase the loan principal.
If the lender adds the fee to your loan, the financed balance increases.
That can mean paying interest on the fee as well as the vehicle purchase.
CalcHarbour lets you indicate whether the establishment fee is financed so you can see that difference more clearly.
Interest Rate vs Comparison Rate
When comparing Australian car loans, do not rely only on the headline interest rate.
The comparison rate is designed to combine the interest rate with most fees and charges into one percentage figure for relevant fixed-term consumer credit.
ASIC states that comparison rates are intended to help consumers compare the cost of different credit products, although they do not include every possible fee, government charge or cost that only arises in particular circumstances. ASIC ↗
Moneysmart also recommends comparing car-loan features, fees and interest rates rather than assessing the advertised rate alone. Moneysmart ↗
When comparing two finance offers, consider:
- Interest rate
- Comparison rate
- Establishment fee
- Ongoing fees
- Loan term
- Balloon payment
- Total amount repaid
A loan with a lower monthly repayment is not automatically the cheaper loan.
Secured vs Unsecured Car Loans
Car finance may be secured or unsecured.
Secured car loan
With a secured loan, the vehicle is generally used as security for the debt.
Moneysmart notes that if the borrower does not meet the repayment obligations, the lender may be able to repossess and sell the secured vehicle in accordance with the applicable credit arrangements. Moneysmart ↗
Secured finance may sometimes have a lower interest rate because the lender has security.
Unsecured loan
An unsecured loan does not use the vehicle as security in the same way.
Because the lender may be taking greater credit risk, the interest rate can be higher.
The CalcHarbour calculator does not determine which product you qualify for or which structure is suitable for you.
Fixed vs Variable Car Loan Rates
Australian car loans may use fixed or variable interest rates.
Fixed rate
A fixed interest rate generally remains unchanged during the agreed fixed period.
This makes the scheduled repayments more predictable.
Variable rate
A variable interest rate can change.
If the lender increases the applicable rate, repayments or the total cost of the loan may increase.
Moneysmart notes that the choice between fixed and variable rates can materially affect repayments and total loan costs. Moneysmart ↗
CalcHarbour includes a rate stress-test option so you can estimate what repayments could look like at a higher interest rate.
This is a modelling tool only and does not predict future rates.
Can Extra Repayments Save Interest?
Extra repayments may reduce the amount of interest charged when they reduce the outstanding balance earlier.
Potential benefits can include:
- paying the loan off sooner
- reducing total interest
- reducing the amount left as a balloon
- lowering the total finance cost
The calculator compares the standard repayment schedule with a scenario that includes additional repayments.
However, check your finance agreement before relying on this strategy.
Some loans may restrict extra repayments, apply limits or include early repayment costs.
Your lender’s terms take precedence over the calculator.
What About Registration, Stamp Duty and Other Vehicle Costs?
The purchase price of a car is not always the complete amount required to get the vehicle on the road.
Depending on the vehicle, state or territory and transaction, additional costs may include:
- vehicle duty or stamp duty
- registration
- compulsory insurance requirements
- dealer delivery charges
- transfer fees
- optional accessories
- inspections or other costs
CalcHarbour allows additional financed costs to be included where relevant, but you should enter only costs that are actually being financed under the loan.
Do not automatically add every ownership expense to the finance balance.
For state-specific vehicle duty estimates, CalcHarbour will also provide dedicated vehicle-duty calculators.
What to Compare Before Choosing Car Finance
Before signing a car-finance agreement, compare more than the repayment displayed in an advertisement.
Amount financed
Check exactly how much debt is being created after deposits, trade-ins and financed costs.
Interest rate
Use the actual rate offered to you.
Comparison rate
Compare the rate using the same loan amount and term where possible. Moneysmart specifically notes the importance of comparing equivalent scenarios. Moneysmart ↗
Loan term
Longer terms can reduce regular repayments while keeping the debt outstanding for longer.
Fees
Review establishment, broker, introducer and ongoing charges.
Balloon payment
Understand exactly how much remains owing at the end.
Extra repayment rules
Check whether additional repayments are allowed and whether costs apply.
Total cost
Compare the total amount expected to leave your pocket over the finance period, not simply the weekly or monthly payment.
Frequently Asked Questions
It depends on the deposit, amount financed, interest rate, loan term, fees and whether the loan includes a balloon. For example, financing $35,000 for five years at 8.50% p.a. with monthly repayments and no fees produces an estimated repayment of $718.08 per month using CalcHarbour's modelling assumptions.
Enter the actual annual interest rate quoted by the lender. The calculator's default value is an example only and is not intended to represent the current market rate or a rate available to you.
Important Information
The CalcHarbour Car Loan Calculator is provided for general information and educational purposes.
It is not:
- personal financial advice
- credit assistance
- a credit recommendation
- a loan approval
- a lender quote
The calculator does not assess your income, expenses, credit history, borrowing capacity or suitability for a particular loan.
Actual finance costs may differ from the result shown.
Before entering a finance agreement, review the lender’s credit contract, interest rate, comparison rate, fees, balloon conditions and repayment rules.
Official Sources
ASIC Moneysmart — Car Loans
Used for Australian consumer information relating to secured and unsecured car loans, balloon payments, fees, fixed and variable rates, comparison rates and car-finance considerations. Moneysmart ↗
Australian Securities and Investments Commission — National Credit Code
Used for information about Australia’s comparison-rate requirements and what comparison rates do and do not include. ASIC ↗
Last content review: 11 October 2026
Calculator version: CAR-LOAN-1.0